The tension between the US and Mexico

The tension between the US and Mexico has lasted since Donald Trump became the US president. The current US president has a reputation of being tough on illegal immigrants and making more strict migration policies. Mexico is a neighbour country of the US, inevitably the number of Mexican immigrants is larger than the numbers of most of other countries' immigrants in the US. This may be the major factor that leads to the tension between the US and Mexico.

However, the tension does not limit to the US migration policy, it has extended to the trade policy as well. The US president has repeatedly said in the public that the border wall between the US and Mexico will be paid by Mexico. One of his methods is to pay by Mexico's trade surplus with the US, and linking tariffs with Mexico's efforts on controlling immigration is just a more detailed plan of this method. We should not be surprised to see this being proposed or happening, as he proposed this method as early as his presidential election around two years ago. People should definitely see this coming.

What we should be really surprised about is that the market has not got used to this president yet. The world stock market fell sharply in response to the president's threat, which should be expected to some degree. Moreover, the trade war between the US and Mexico is not a very new topic, the president has been talking about it for some time; we cannot simply think his words are just bluffing just because we have not seen his action yet. Yes, this president is more unpredictable than most presidents in the US history; however, some certain patterns are there and we can make some expectations about this president based on these patterns.

Overall, I do not think that Donald Trump made a surprising move, I think that rather the stock market surprisingly still does not know how to respond to this president.